1-1     By:  Hilbert (Senate Sponsor - Lindsay)               H.B. No. 2965
 1-2           (In the Senate - Received from the House April 23, 1999;
 1-3     April 27, 1999, read first time and referred to Committee on
 1-4     Natural Resources; May 10, 1999, reported favorably, as amended, by
 1-5     the following vote:  Yeas 5, Nays 0; May 10, 1999, sent to
 1-6     printer.)
 1-7     COMMITTEE AMENDMENT NO. 1                           By:  Armbrister
 1-8     Amend H.B. 2965 (House Engrossment) as follows:
 1-9           (1)  In SECTION 1.03(b) of the bill strike subdivisions (1)
1-10     and (2) (page 4, lines 36 and 37) and renumber accordingly.
1-11     COMMITTEE AMENDMENT NO. 2                           By:  Armbrister
1-12     Amend H.B. 2965 (House Engrossment) as follows:
1-13           (1)  In SECTION 2.05(a)(2) of the bill strike "Saturday in
1-14     May" (p. 5, line 44) and substitute "uniform election date of the
1-15     calendar year".
1-16           (2)  In SECTION 2.06 of the bill strike "Saturday in May" (p.
1-17     6, line 22) and substitute "uniform election date of the calendar
1-18     year".
1-19     COMMITTEE AMENDMENT NO. 3                           By:  Armbrister
1-20           Amend H.B. No. 2965 (House engrossment) as follows:
1-21           (1)  In SECTION 1.03(b) of the bill strike "(b) The district"
1-22     (page 4, line 30) and substitute "(b) The authority" and strike
1-23     Subdivisions (5) and (6) (page 4, lines 40 and 41) and substitute:
1-24                 "(5)  District 130;
1-25                 (6)  District 135; and
1-26                 (7)  District 150."
1-27           (2)  In SECTION 1.03 of the bill, following Subsection (c) of
1-28     that section (page 4, between lines 45 and 46), insert:
1-29           "(d)  After the confirmation election held under Section 2.05
1-30     of this Act, the authority includes only that part of the area
1-31     described by this section that the temporary board determines is
1-32     inside the authority's boundaries as provided by Section 2.05(e) of
1-33     this Act.
1-34           (e)  On a municipality's annexation of any of the authority's
1-35     territory, the annexed territory is excluded from the authority's
1-36     territory.  The authority shall continue to provide services to the
1-37     annexed territory in accordance with contracts in effect at the
1-38     time of the annexation unless a written agreement between the board
1-39     and the governing body of the municipality provides otherwise."
1-40           (3)  Following SECTION 1.03 of the bill (page 4, between
1-41     lines 45 and 46), add the following section:
1-42           "SECTION 1.04.  EXCLUSION OF CERTAIN TERRITORY.  (a)  A
1-43     district organized under Section 52, Article III, or Section 59,
1-44     Article XVI, Texas Constitution, that is located in the portion of
1-45     the territory described by Section 1.03(a) of this Act that is
1-46     south of Beltway 8 or east of U.S. Highway 59 may petition for
1-47     exclusion of its territory from the authority's territory.  Before
1-48     the 61st day after the date the authority receives the petition,
1-49     the board shall:
1-50                 (1)  grant the petition and order the territory
1-51     excluded if the petition:
1-52                       (A)  includes an accurate legal description of
1-53     the boundaries of the territory to be excluded; and
1-54                       (B)  the petition is filed with the authority
1-55     before January 1, 2001; and
1-56                 (2)  if the board grants the petition, file for
1-57     recording in the office of the county clerk of Harris County a copy
1-58     of the order and a description of the authority's boundaries as
1-59     they exist after the exclusion of the territory.
1-60           (b)  The order excluding the territory is effective
1-61     immediately after the order and description are recorded."
 2-1           (4)  In ARTICLE 1 of the bill, redesignate SECTION
 2-2     1.04 of the bill (page 4, lines 46-50) as SECTION 1.05 and
 2-3     redesignate SECTION 1.05 of the bill (page 4, lines 51-55) as
 2-4     SECTION 1.06.
 2-5           (5)  In SECTION 2.02(a) of the bill (page 4, line 68), strike
 2-6     "the nine" and substitute "nine".
 2-7           (6)  In SECTION 4.01 of the bill, following Subsection (b) of
 2-8     that section (page 7, between lines 27 and 28), insert:
 2-9           "(c)  The authority's rights, powers, privileges, authority,
2-10     functions, and duties are subject to the continuing right of
2-11     supervision of the state, to be exercised by and through the
2-12     commission.
2-13           (d)  The authority shall exercise its rights, powers,
2-14     privileges, and authority in a manner that will promote
2-15     regionalization of water treatment and distribution."
2-16           (7)  In SECTION 4.03 of the bill:
2-17                       (A)  at the end of Subdivision (2) of Subsection
2-18     (b) (page 7, line 46), strike "or"; and
2-19                       (B)  at the end of Subdivision (3) of Subsection
2-20     (b) (page 7, line 47), between "crops" and the period, insert:
2-21                 "(4)  that produces 10 million gallons or less
2-22     annually; or
2-23                 (5)  used solely for electric generation".
2-24           (8)  In the heading of SECTION 4.06 of the bill between
2-25     "SYSTEMS." and "The" (page 8, line 15), insert "(a)".
2-26           (9)  Following Section 4.06(4) of the bill (page 8, between
2-27     lines 26 and 27), insert:
2-28           "(b)  The authority shall give persons outside the
2-29     authority's boundaries, including the City of Houston, the option
2-30     to contract for available excess capacity of the authority's water
2-31     treatment or supply system or, before construction of a water
2-32     treatment or supply system begins, for additional capacity of the
2-33     system.  The authority must offer a contract that would enable the
2-34     person to pay for the excess capacity or additional capacity in
2-35     accordance with the person's pro rata share of the capital
2-36     investment and operational and maintenance costs for providing the
2-37     excess capacity or additional capacity."
2-38           (10)  In SECTION 4.10 of the bill, following Subsection (b)
2-39     of that section (page 9, between lines 8 and 9), insert:
2-40           "(c)  The board shall coordinate with the City of Houston to
2-41     develop an interregional plan for a system to distribute treated
2-42     surface water in an economical and efficient manner."
2-43                            A BILL TO BE ENTITLED
2-44                                   AN ACT
2-45     relating to the creation, administration, powers, duties,
2-46     operation, and financing of the North Harris County Regional Water
2-47     Authority; granting the power of eminent domain and the authority
2-48     to issue bonds; providing a civil penalty.
2-49           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
2-50                       ARTICLE 1.  GENERAL PROVISIONS
2-51           SECTION 1.01.  CREATION.  (a)  A regional water authority, to
2-52     be known as the North Harris County Regional Water Authority, is
2-53     created in Harris County, subject to a confirmation election held
2-54     under Section 2.05 of this Act.  The authority is a governmental
2-55     agency and a body politic and corporate.
2-56           (b)  The authority is created under and is essential to
2-57     accomplish the purposes provided by Section 59, Article XVI, Texas
2-58     Constitution.
2-59           SECTION 1.02.  DEFINITIONS.  In this Act:
2-60                 (1)  "Authority" means the North Harris County Regional
2-61     Water Authority.
2-62                 (2)  "Board" means the board of directors of the
2-63     authority.
2-64                 (3)  "Commission" means the Texas Natural Resource
2-65     Conservation Commission.
2-66                 (4)  "Director" means a member of the board.
2-67                 (5)  "Local government" means a municipality, county,
 3-1     special district, or other political subdivision of this state or a
 3-2     combination of two or more of those entities.
 3-3                 (6)  "Person" has the meaning assigned by Section
 3-4     311.005, Government Code.
 3-5                 (7)  "Subsidence district" means the Harris-Galveston
 3-6     Coastal Subsidence District.
 3-7                 (8)  "System" means a network of pipelines, conduits,
 3-8     canals, pumping stations, force mains, treatment plants, and any
 3-9     other construction, device, or related appurtenance used to treat
3-10     or transport water.
3-11                 (9)  "Water" includes:
3-12                       (A)  groundwater, percolating or otherwise;
3-13                       (B)  any surface water, natural or artificial,
3-14     navigable or nonnavigable; and
3-15                       (C)  industrial and municipal wastewater.
3-16                 (10)  "Subsidence" means the lowering in elevation of
3-17     the surface of land by the withdrawal of groundwater.
3-18                 (11)  "Agricultural crop" means food or fiber
3-19     commodities grown for resale or commercial purposes that provide
3-20     food, clothing, or animal feed.
3-21           SECTION 1.03.  DESCRIPTION OF BOUNDARIES.  (a)  Except as
3-22     provided by this section, the authority includes the territory that
3-23     is contained in the following area, whether the territory contains
3-24     noncontiguous parcels of land or whether the territory is located
3-25     within the boundaries of any other governmental entity or political
3-26     subdivision of the state, but only if also contained in one or more
3-27     of the house districts described by this section:
3-28           BEGINNING at the intersection of the Harris and Waller County
3-29     line with the north right-of-way line of U.S.  Highway 290 (current
3-30     alignment);
3-31           THENCE northwest along the Harris and Waller County line to
3-32     the intersection with Spring Creek;
3-33           THENCE continuing southeasterly along said Harris and Waller
3-34     County line, with the meanders of Spring Creek to the intersection
3-35     of the Waller and Montgomery County line;
3-36           THENCE southeasterly along the Harris and Montgomery County
3-37     line continuing with the meanders of said Spring Creek; to the
3-38     intersection with the City of Houston, corporate limits;
3-39           THENCE along said City of Houston corporate limits, the
3-40     following: south approximately one half mile;  east approximately
3-41     one half mile to the City of Humble corporate limits; north along
3-42     said City of Humble corporate limits approximately one half mile to
3-43     aforementioned Spring Creek; east along Spring Creek to its
3-44     confluence with the San Jacinto River to the intersection of U.S.
3-45     Highway 59; easterly and southerly along the take line for Lake
3-46     Houston to the intersection with the southeasterly right-of-way of
3-47     the Union Pacific Railroad; southwesterly along said Union Pacific
3-48     Railroad for approximately two miles; south to the north end of
3-49     Duessen Parkway; southeast along the east side of Duessen Parkway
3-50     and along the north side of the access road to the intersection
3-51     with North Lake Houston Parkway;
3-52           THENCE departing said City of Houston corporate limits, west
3-53     along the north side of said North Lake Houston Parkway to the
3-54     beginning of Mount Houston Road, and continuing west on Mount
3-55     Houston Road to the 6900 block to the intersection of Suburban;
3-56           THENCE south along Suburban to the City of Houston corporate
3-57     limits;
3-58           THENCE along said City of Houston corporate limits, the
3-59     following: west to Hirsch Road; south along the west side of Hirsch
3-60     Road to Langely; west along the south side of Langley to the
3-61     southbound feeder road of US Highway 59; northeast along the west
3-62     side of the feeder road of US Highway 59 to Little York; west along
3-63     the south side of Little York to Bentley; north along the east side
3-64     of Bentley to Sagebrush; west along the north side of Sagebrush to
3-65     Halls Bayou; south along Halls Bayou to Little York; west along the
3-66     south side of Little York to Aldine Westfield Road; north along the
3-67     east sides of Aldine Westfield Road to its intersection with the
3-68     easterly extension of the City of Houston corporate limits; west to
3-69     the Hardy Toll Road; north along the Hardy Toll Road approximately
 4-1     0.25 miles; east approximately 0.35 mile; north approximately 0.15
 4-2     mile; west approximately 0.35 mile; northwest along the Hardy Toll
 4-3     Road approximately 1 mile; southwesterly along an irregular path
 4-4     generally west to Carby; west along Carby to Airline Drive; south
 4-5     along Airline Drive  to Canino; west along Canino to Sweetwater;
 4-6     north along Sweetwater to West Road; west to Interstate 45/US 75;
 4-7     south along Interstate 45/US 75 to south of Bluebell Road;
 4-8     southerly along an irregular path generally south and west to West
 4-9     Mount Houston Road; west along Mount Houston Road to a line east of
4-10     Ella Boulevard; south along a line generally parallel to Ella
4-11     Boulevard to south of West Gulf Bank; west along the south side of
4-12     West Gulf Bank to Tomball Parkway; northwest along Tomball Parkway
4-13     approximately 1.5 mile; west along an irregular path to North
4-14     Houston-Rosslyn Road; north along North Houston-Rosslyn Road to
4-15     Vogel Creek; west along Vogel Creek to the FWD CRIP RR;  south
4-16     along the FWD CRIP RR to Logview;  west along Logview to Hollister;
4-17     south along Hollister to White Oak Bayou;  east along White Oak
4-18     Bayou to Twisting Vine; south along Twisting Vine to West Little
4-19     York; west along West Little York to Fairbanks North Houston; south
4-20     along Fairbanks North Houston to Cole Creek; west along Cole Creek
4-21     to Hempstead Road; northwest along Hempstead Road to Brittmore
4-22     Road, also being the intersection with U.S.  Highway 290, Northwest
4-23     Freeway;
4-24           THENCE departing said City of Houston corporate limits and
4-25     continuing northwest along U.S. Highway 290, Northwest Freeway, at
4-26     Spencer Road;
4-27           THENCE northwest along U.S. Highway 290, Northwest Freeway
4-28     (current alignment), to the intersection of the Harris and Waller
4-29     County line, the POINT OF BEGINNING.
4-30           (b)  The district includes only that territory described by
4-31     Subsection (a) of this section that is also in the following state
4-32     representative districts as described by Article II, Chapter 2,
4-33     Acts of the 72nd Legislature, 3rd Called Session, 1992 (Article II,
4-34     Article 195a-11, Vernon's Texas Civil Statutes), as the districts
4-35     existed on the effective date of this Act:
4-36                 (1)  District 141;
4-37                 (2)  District 140;
4-38                 (3)  District 127;
4-39                 (4)  District 126;
4-40                 (5)  District 135; and
4-41                 (6)  District 150.
4-42           (c)  Notwithstanding Subsections (a) and (b) of this section,
4-43     the authority does not include any area that, on the effective date
4-44     of this Act, is inside the municipal limits of the city of Houston
4-45     or inside the municipal limits of the city of Humble.
4-46           SECTION 1.04.  APPLICABILITY OF OTHER LAW.  (a)  This Act
4-47     prevails over any inconsistent provision of general law.
4-48           (b)  This Act does not prevail over or preempt a provision of
4-49     Chapter 151, Water Code, or Chapter 36, Water Code, that is being
4-50     implemented by the subsidence district.
4-51           SECTION 1.05.  FINDING OF BENEFIT.  All the land and other
4-52     property included within the boundaries of the authority will be
4-53     benefited by the works and projects that are to be accomplished by
4-54     the authority under powers conveyed by this Act.  The authority is
4-55     created to serve a public use and benefit.
4-56                            ARTICLE 2.  DIRECTORS
4-57           SECTION 2.01.  BOARD OF DIRECTORS.  (a)  The authority is
4-58     governed by a board of nine directors.
4-59           (b)  The board shall appoint a person to fill a vacancy in
4-60     the office of director until the next election for directors.  If
4-61     the position is not scheduled to be filled at the election, the
4-62     person elected to fill the position serves only for the remainder
4-63     of the unexpired term.
4-64           (c)  To be eligible to serve as director, a person must be a
4-65     qualified voter in the voting district from which the person is
4-66     elected or appointed.
4-67           SECTION 2.02.  METHOD OF ELECTION OF DIRECTORS.  (a)  One
4-68     director shall be elected from each of the nine single-member
4-69     voting districts by the qualified voters of the voting district.
 5-1           (b)  A person shall indicate on the person's application for
 5-2     a place on the ballot the voting district that the person seeks to
 5-3     represent.
 5-4           (c)  In the manner described by Section 49.103(d), Water
 5-5     Code, the board shall redraw the single-member voting districts as
 5-6     soon as practicable after:
 5-7                 (1)  each federal decennial census; and
 5-8                 (2)  any change in the boundaries of the authority.
 5-9           (d)  At the first election after each time the voting
5-10     districts are redrawn:
5-11                 (1)  nine new directors shall be elected to represent
5-12     the single-member voting districts; and
5-13                 (2)  the directors elected shall draw lots to determine
5-14     their terms so that:
5-15                       (A)  four directors serve two-year terms; and
5-16                       (B)  five directors serve four-year terms.
5-17           (e)  Subchapter C, Chapter 146, Election Code, applies to the
5-18     consideration of votes for a write-in candidate for the initial
5-19     permanent director or permanent director as if the authority were a
5-20     municipality.
5-21           SECTION 2.03.  SERVICE OF DIRECTORS.  (a)  Temporary
5-22     directors serve until the initial permanent directors are elected
5-23     under Section 2.05 of this Act.
5-24           (b)  The initial permanent directors serve until permanent
5-25     directors are elected under Section 2.06 of this Act.
5-26           (c)  Permanent directors serve staggered four-year terms.
5-27           (d)  A director serves until the director's successor has
5-28     qualified.
5-29           SECTION 2.04.  TEMPORARY DIRECTORS.  (a)  The temporary board
5-30     of directors is composed of three individuals appointed by the
5-31     commission.
5-32           (b)  If a temporary director fails to qualify for office, the
5-33     temporary directors who have qualified shall appoint a person to
5-34     fill the vacancy.  If at any time there are fewer than two
5-35     qualified temporary directors, or if the temporary directors cannot
5-36     agree on the appointment, the commission shall appoint the
5-37     necessary number of persons to fill all vacancies on the board.
5-38           (c)  A temporary director is not eligible to be elected under
5-39     Section 2.05 of this Act.
5-40           SECTION 2.05.  CONFIRMATION AND INITIAL PERMANENT DIRECTORS
5-41     ELECTION.  (a)  The temporary board of directors shall:
5-42                 (1)  establish nine single-member voting districts in
5-43     the manner described by Section 49.103(d), Water Code; and
5-44                 (2)  on the first Saturday in May 2000 hold an election
5-45     to confirm the establishment of the authority and to elect nine
5-46     initial permanent directors.
5-47           (b)  A person who desires to be a candidate for the office of
5-48     initial permanent director may file an application with the
5-49     temporary board to have the candidate's name printed on the ballot.
5-50           (c)  At the confirmation and initial permanent directors
5-51     election, the temporary board of directors shall have placed on the
5-52     ballot:
5-53                 (1)  the name of each candidate filing for the office
5-54     of director; and
5-55                 (2)  blank spaces to write in the names of other
5-56     persons.
5-57           (d)  If the authority is created at the election, the
5-58     temporary board of directors, at the time the vote is canvassed,
5-59     shall:
5-60                 (1)  declare the qualified person who receives the most
5-61     votes for each position to be elected as the initial director for
5-62     that position; and
5-63                 (2)  include the results of the initial directors
5-64     election in the authority's election report to the commission.
5-65           (e)  As soon as practicable after the initial permanent
5-66     directors have qualified, the directors shall draw lots to
5-67     determine their terms so that:
5-68                 (1)  four directors serve terms that expire when
5-69     permanent directors are elected at the first election held under
 6-1     Section 2.06 of this Act; and
 6-2                 (2)  five directors serve terms that expire when
 6-3     permanent directors are elected at the second election held under
 6-4     Section 2.06 of this Act.
 6-5           (f)  Section 41.001(a), Election Code, does not apply to the
 6-6     confirmation and initial permanent directors election held under
 6-7     this section.
 6-8           (g)  The temporary board of directors shall draft language
 6-9     for the ballot proposition used for the confirmation election.  The
6-10     ballot proposition must clearly and completely explain:
6-11                 (1)  the powers and duties of the authority;
6-12                 (2)  whether the authority has the power of eminent
6-13     domain;
6-14                 (3)  whether the authority has the authority to issue
6-15     bonds;
6-16                 (4)  whether the authority has the authority to impose
6-17     taxes; and
6-18                 (5)  whether the authority has the authority to impose
6-19     fees.
6-20           (h)  The ballot language must explain the nature of any fees
6-21     or taxes the authority has the authority to impose.
6-22           SECTION 2.06.  ELECTION DATES.  On the first Saturday in May
6-23     in each subsequent even-numbered year, the appropriate number of
6-24     directors shall be elected to the board.
6-25           SECTION 2.07.  COST OF ELECTION.  (a)  The temporary board of
6-26     the authority shall fund the cost of the confirmation and initial
6-27     permanent directors election if the temporary board is able to find
6-28     a reasonable means of funding the election.
6-29           (b)  If the temporary board is unable to fund the entire cost
6-30     of the election, the temporary board of the authority and the board
6-31     of directors of the subsidence district may execute an agreement by
6-32     which:
6-33                 (1)  the subsidence district shall pay the portion of
6-34     the costs that could not be funded by the district; and
6-35                 (2)  the authority shall repay the subsidence district
6-36     for those costs within a reasonable period.
6-37                    ARTICLE 3.  ADMINISTRATIVE PROVISIONS
6-38           SECTION 3.01.  MEETINGS AND ACTIONS OF BOARD.  The board
6-39     shall meet at least four times each year and may meet at any other
6-40     time the board considers appropriate.
6-41           SECTION 3.02.  GENERAL MANAGER.  (a)  The board shall employ
6-42     a general manager as the chief administrative officer of the
6-43     authority.  The board may  delegate to the general manager full
6-44     authority to manage and operate the affairs of the authority
6-45     subject only to the orders of the board.
6-46           (b)  The duties of the general manager include:
6-47                 (1)  the administration of the orders of the board;
6-48                 (2)  coordination with state, federal, and local
6-49     agencies;
6-50                 (3)  the oversight of development of authority plans
6-51     and programs; and
6-52                 (4)  other duties assigned by the board.
6-53           (c)  The board shall determine the terms of office and
6-54     employment and the compensation to be paid the general manager.
6-55     The general manager may be discharged by majority vote of the
6-56     board.
6-57           SECTION 3.03.  EMPLOYEES; BONDS.  (a)  The general manager of
6-58     the authority shall employ all persons necessary for the proper
6-59     handling of the business and operations of the authority and may
6-60     employ attorneys, bookkeepers, engineers, and other expert and
6-61     specialized personnel the board considers necessary.  The general
6-62     manager shall determine compensation to be paid by the authority.
6-63           (b)  The general manager may discharge employees of the
6-64     authority.
6-65           (c)  The general manager of the authority and each employee
6-66     or contractor of the authority who is charged with the collection,
6-67     custody, or payment of any money of the authority shall execute a
6-68     fidelity bond in an amount determined by the board and in a form
6-69     and with a surety approved by the board.  The authority shall pay
 7-1     for the bond.
 7-2                        ARTICLE 4.  POWERS AND DUTIES
 7-3           SECTION 4.01.  GENERAL POWERS AND DUTIES.  (a)  The authority
 7-4     has all of the rights, powers, privileges, authority, functions,
 7-5     and duties necessary and convenient to accomplish the purposes of
 7-6     this Act, including those provided by Chapter 49, Water Code.
 7-7           (b)  The authority may:
 7-8                 (1)  provide for the conservation, preservation,
 7-9     protection, recharge, and prevention of waste of groundwater, and
7-10     for the reduction of groundwater withdrawals, in a manner
7-11     consistent with the purposes of Section 59, Article XVI, Texas
7-12     Constitution;
7-13                 (2)  for the purposes of reducing groundwater
7-14     withdrawals and subsidence, acquire or develop surface water and
7-15     groundwater supplies from sources inside of or outside of the
7-16     boundaries of the authority and may conserve, store, transport,
7-17     treat, purify, distribute, sell, and deliver water to persons,
7-18     corporations, municipal corporations, political subdivisions of the
7-19     state, and others, inside of and outside of the boundaries of the
7-20     authority;
7-21                 (3)  enter into contracts with persons, including
7-22     political subdivisions of the state, on terms and conditions the
7-23     board considers desirable, fair, and advantageous for the
7-24     performance of its rights, powers, and authority under this Act;
7-25                 (4)  coordinate water services provided inside of,
7-26     outside of, or into the authority; and
7-27                 (5)  administer and enforce the provisions of the Act.
7-28           SECTION 4.02.  AUTHORITY RULES.  (a)  The authority shall
7-29     adopt and enforce rules reasonably required to implement this Act,
7-30     including rules governing procedures before the board.
7-31           (b)  The board shall compile its rules in a book and make
7-32     them available for use and inspection at the authority's principal
7-33     office.
7-34           SECTION 4.03.  FEES AND CHARGES.  (a)  The authority may
7-35     establish fees and charges as necessary to enable the authority to
7-36     fulfill the authority's regulatory obligations provided by this
7-37     Act.
7-38           (b)  The authority may charge against the owner of a well
7-39     located in the authority's boundaries a fee on the amount of water
7-40     pumped from the well.  The board shall establish the rate of a fee
7-41     under this subsection only after a special meeting on the fee.  The
7-42     board by rule may exempt classes of wells from the fee under this
7-43     subsection.  The board may not apply the fee to a well:
7-44                 (1)  with a casing diameter of less than five inches
7-45     that serves a single-family dwelling;
7-46                 (2)  regulated under Chapter 27, Water Code; or
7-47                 (3)  used for irrigation of agricultural crops.
7-48           (c)  Fees the board establishes must be sufficient to:
7-49                 (1)  achieve water conservation, prevent waste of
7-50     water, serve as a disincentive to pumping groundwater, and
7-51     accomplish the purposes of this Act, including making available
7-52     alternative water supplies; and
7-53                 (2)  enable the authority to meet operation and
7-54     maintenance expenses and pay the principal of and interest on debt
7-55     issued in connection with the exercise of the authority's general
7-56     powers and duties.
7-57           (d)  The temporary board may set fees to pay for the initial
7-58     operation of the authority and the election of the initial
7-59     permanent board until the permanent board has been elected.
7-60           SECTION 4.04.  CIVIL PENALTY; INJUNCTION.  (a)  A person who
7-61     violates a rule or order of the authority is subject to a civil
7-62     penalty of not less than $50 and not more than $5,000 for each
7-63     violation or each day of a continuing violation.
7-64           (b)  The authority may bring an action to recover the penalty
7-65     in a district court in the county where the violation occurred.
7-66     The penalty shall be paid to the authority.
7-67           (c)  The authority may bring an action for injunctive relief
7-68     in a district court in the county where a violation of an authority
7-69     rule or order occurs or is threatened to occur.  The court may
 8-1     grant to the authority, without bond or other undertaking, a
 8-2     prohibitory or mandatory injunction that the facts warrant,
 8-3     including a temporary restraining order, temporary injunction, or
 8-4     permanent injunction.
 8-5           (d)  The authority may bring an action for a civil penalty
 8-6     and injunctive relief in the same proceeding.
 8-7           SECTION 4.05.  WATER SUPPLY PLANS.  The authority by rule
 8-8     shall, as needed but not less frequently than every five years,
 8-9     develop, prepare, revise, and adopt comprehensive water supply and
8-10     drought contingency plans for various areas of the authority.  The
8-11     plans:
8-12                 (1)  must be consistent with regional planning; and
8-13                 (2)  must include 10-year, 20-year, and 50-year
8-14     projections of water needs within the authority.
8-15           SECTION 4.06.  ACQUISITION, CONSTRUCTION, AND OPERATION OF
8-16     SYSTEMS.  The authority may:
8-17                 (1)  acquire and provide by purchase, gift, or lease a
8-18     water treatment or supply system inside of or outside of the
8-19     authority's boundaries;
8-20                 (2)  design, finance, or construct a water treatment or
8-21     supply system and provide water services inside of or outside of
8-22     the authority's boundaries;
8-23                 (3)  operate, lease, or sell a water treatment or
8-24     supply system the authority constructs or acquires; and
8-25                 (4)  contract with any person to operate or maintain a
8-26     water treatment or supply system the person owns.
8-27           SECTION 4.07.  SALE OR REUSE OF WATER OR BY-PRODUCT.  The
8-28     authority may store, sell, or reuse:
8-29                 (1)  water; or
8-30                 (2)  any by-product from the authority's operations.
8-31           SECTION 4.08.  EMINENT DOMAIN.  The authority may exercise
8-32     the power of eminent domain in the manner provided in Chapter 21,
8-33     Property Code, to acquire property of any kind to further
8-34     authorized purposes of the authority.  The authority may not
8-35     exercise the power of eminent domain outside of the boundaries of
8-36     the authority.
8-37           SECTION 4.09.  CONTRACTS.  (a)  The authority may enter into
8-38     a contract with any person or legal entity regarding the
8-39     performance of any purpose or function of the authority, including
8-40     a contract to jointly construct, finance, own, or operate works,
8-41     improvements, facilities, plants, equipment, or appliances
8-42     necessary to accomplish a purpose or function of the authority.  A
8-43     contract may be of unlimited duration.
8-44           (b)  The authority may purchase an interest in a project used
8-45     for a purpose or function of the authority.
8-46           (c)  The authority may contract for:
8-47                 (1)  the purchase or sale of water or water rights;
8-48                 (2)  the performance of activities within the powers of
8-49     the authority to promote the continuing and orderly development of
8-50     land and property in the authority through the purchase,
8-51     construction, or installation of works, improvements, facilities,
8-52     plants, equipment, or appliances so that, to the greatest extent
8-53     possible, considering sound engineering practices and economic
8-54     feasibility, all the land and property in the authority may receive
8-55     services of the works, improvements, facilities, plants, equipment,
8-56     or appliances of the authority; or
8-57                 (3)  the construction, ownership, maintenance, or
8-58     operation of any works, improvements, facilities, plants,
8-59     equipment, or appliances of the authority or another person or
8-60     legal entity.
8-61           (d)  The authority may purchase surplus property from this
8-62     state, the United States, or another public entity through a
8-63     negotiated contract without bids.
8-64           (e)  An officer, agent, or employee of the authority who is
8-65     financially interested in the contract of the type described by
8-66     Subsection (d) of this section shall disclose the interest to the
8-67     board before the board votes on the acceptance of the contract.
8-68           SECTION 4.10.  COOPERATION WITH AND ASSISTANCE OF OTHER
8-69     GOVERNMENTAL ENTITIES.  (a)  In implementing this Act, the board
 9-1     may cooperate with and request the assistance of the Texas Water
 9-2     Development Board, the commission, the United States Geological
 9-3     Survey, the subsidence district, other local governments, and other
 9-4     agencies of the United States and this state.
 9-5           (b)  The subsidence district may enter into an interlocal
 9-6     contract with the authority to carry out the authority's purposes
 9-7     and may carry out the governmental functions and services specified
 9-8     in the interlocal contract.
 9-9           SECTION 4.11.  GIFTS AND GRANTS.  The authority is authorized
9-10     to accept a gift or grant from money collected by the subsidence
9-11     district under Chapter 151, Water Code, to fund a water treatment
9-12     or supply system.  The authorization in this section is in addition
9-13     to the authorization provided in Section 49.229, Water Code.
9-14           SECTION 4.12.  EXPENDITURES.  (a)  The authority's money may
9-15     be disbursed only by check, draft, order, or other instrument.
9-16           (b)  Disbursements of the authority must be signed by at
9-17     least two directors, except the board by resolution may allow the
9-18     general manager, treasurer, bookkeeper, or other employee of the
9-19     authority to sign disbursements.
9-20           (c)  The board by resolution may allow disbursements to be
9-21     transferred by federal reserve wire system to accounts in the name
9-22     of the authority.
9-23           SECTION 4.13.  TAXATION.  The district may not impose an ad
9-24     valorem tax.
9-25                         ARTICLE 5.  NOTES AND BONDS
9-26           SECTION 5.01.  REVENUE NOTES.  (a)  The board, without an
9-27     election, may borrow money on negotiable notes of the authority to
9-28     be paid solely from the revenue derived from any legal source,
9-29     including:
9-30                 (1)  tolls, charges, and fees the authority imposes;
9-31                 (2)  the sale of water, water or sewer services, or any
9-32     other service or product of the authority;
9-33                 (3)  grants or gifts;
9-34                 (4)  the ownership and operation of all or a designated
9-35     part of the authority's works, improvements, facilities, plants, or
9-36     equipment; and
9-37                 (5)  contracts between the authority and any person,
9-38     including a local government.
9-39           (b)  The notes may be first or subordinate lien notes at the
9-40     board's discretion. An obligation may not be a charge on the
9-41     property of the authority.  An obligation may only be a charge on
9-42     revenue pledged for the payment of the obligation.
9-43           SECTION 5.02.  BONDS.  (a)  To carry out a power or authority
9-44     conferred by this Act, the authority may issue bonds secured by all
9-45     or part of the revenue derived from any source, including any
9-46     source described by Section 5.01(a) of this Act.
9-47           (b)  In issuing or securing a bond or note of the authority,
9-48     the authority may exercise any power of an issuer under Chapter
9-49     656, Acts of the 68th Legislature, Regular Session, 1983 (Article
9-50     717q, Vernon's Texas Civil Statutes).
9-51           (c)  The authority may conduct a public, private, or
9-52     negotiated sale of the bonds.
9-53           (d)  The authority's bonds must:
9-54                 (1)  be authorized by board resolution;
9-55                 (2)  be issued in the authority's name;
9-56                 (3)  be signed by the president or vice president of
9-57     the board, which may be accomplished by facsimile signature;
9-58                 (4)  be attested by the secretary of the board, which
9-59     may be accomplished by facsimile signature; and
9-60                 (5)  bear the authority's seal or facsimile seal.
9-61           (e)  An authority bond may be secured by an indenture of
9-62     trust with a corporate trustee.
9-63           (f)  The authority may issue bonds in more than one series as
9-64     required for carrying out the purposes of this Act.  In issuing
9-65     bonds secured by  revenue of the district, the authority may
9-66     reserve the right to issue additional bonds secured by the
9-67     authority's revenue that are on a parity with or are senior or
9-68     subordinate to the bonds issued earlier.
9-69           (g)  The resolution authorizing the bonds or the trust
 10-1    indenture securing the bonds may specify additional provisions that
 10-2    constitute a contract between the authority and its bondholders.
 10-3    The board may provide:
 10-4                (1)  for additional bond provisions; and
 10-5                (2)  for a corporate trustee or receiver to take
 10-6    possession of the authority's facilities if the authority defaults.
 10-7          (h)  Section 49.181, Water Code, does not apply to bonds or
 10-8    notes issued by the authority.
 10-9          SECTION 5.03.  REFUNDING BONDS.  The provisions of this Act
10-10    that apply to the authority's issuance of other bonds, their
10-11    security, and the remedies of the holders apply to refunding bonds.
10-12          SECTION 5.04.  APPROVAL AND REGISTRATION OF BONDS.  After the
10-13    authority authorizes bonds, the authority shall submit the bonds
10-14    and the record relating to their issuance to the attorney general
10-15    for approval.  If the bonds are secured by a pledge of the proceeds
10-16    of a contract between the authority and a municipality or other
10-17    governmental agency, authority, or district, the authority shall
10-18    submit to the attorney general a copy of the contract and the
10-19    proceedings of the municipality or other governmental agency,
10-20    authority, or district authorizing the contract.  If the attorney
10-21    general finds that the bonds have been authorized and each contract
10-22    has been made in accordance with the constitution and laws of this
10-23    state, the attorney general shall approve the bonds and contracts.
10-24    On approval, the bonds shall be registered by the comptroller.
10-25          SECTION 5.05.  FUNDING BY OTHER DISTRICTS.  (a)  The
10-26    authority shall develop a procedure for cooperatively funding a
10-27    project of the authority with money from other districts inside of
10-28    the authority's boundaries if the authority project fulfills a
10-29    governmental purpose of both the authority and other districts.
10-30          (b)  Not later than the 90th day before the date the
10-31    authority issues bonds, other than refunding bonds, to finance a
10-32    project, the authority shall provide written notice of the
10-33    authority's intention to issue the bonds to each district inside of
10-34    the authority's boundaries that may be benefited or affected by the
10-35    project.  The notice must include the value of the bonds planned to
10-36    be issued, a description of the project the bonds would finance,
10-37    and a schedule of the portion of the project costs financed by the
10-38    bonds that may be allocated to each district benefited or affected.
10-39    The schedule must be prepared by means of a formula certified by
10-40    the authority's engineer.
10-41          (c)  A district may enter into a contract with the authority
10-42    for the district to finance a portion of the proposed project with
10-43    the district's resources instead of using proceeds from bonds of
10-44    the authority for that purpose.  The contract must be executed
10-45    before the authority issues the bonds.  As provided in the
10-46    contract, the authority must:
10-47                (1)  reduce the value of the bond issuance to the
10-48    degree that the district provides project funding; and
10-49                (2)  credit the district for its contribution to the
10-50    project financing and adjust the allocation of revenue pledged to
10-51    the payment of the bonds so that the authority avoids using, to a
10-52    degree commensurate with the contribution, revenue from the
10-53    district to service the authority's bond debt or interest.
10-54                   ARTICLE 6.  MISCELLANEOUS PROVISIONS
10-55          SECTION 6.01.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
10-56    (a)  The proper and legal notice of the intention to introduce this
10-57    Act, setting out the general substance of this Act, has been
10-58    published as provided by law, and the notice and a copy of this Act
10-59    have been furnished to all persons, agencies, officials, or
10-60    entities to which they are required to be furnished by the
10-61    constitution and other laws of this state, including the governor,
10-62    who has submitted the notice and the Act to the commission.
10-63          (b)  The commission has filed its recommendations relating to
10-64    this Act with the governor, lieutenant governor, and speaker of the
10-65    house of representatives within the required time.
10-66          (c)  All requirements of the constitution and laws of this
10-67    state and the rules and procedures of the legislature with respect
10-68    to notice, introduction, and passage of this Act are fulfilled and
10-69    accomplished.
 11-1          SECTION 6.02.  EMERGENCY.  The importance of this legislation
 11-2    and the crowded condition of the calendars in both houses create an
 11-3    emergency and an imperative public necessity that the
 11-4    constitutional rule requiring bills to be read on three several
 11-5    days in each house be suspended, and this rule is hereby suspended,
 11-6    and that this Act take effect and be in force from and after its
 11-7    passage, and it is so enacted.
 11-8                                 * * * * *